Have you been eager to see how Aetna Inc. performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Hartford -based major health insurer’s earnings release this morning:
An Earnings Beat
Aetna came out with earnings of $1.25 per share, which beat the Zacks Consensus Estimate of $1.18. Earnings, however, declined 23% over the prior year quarter.
The year-over-year decline in earnings was primarily due to lower favorable development of prior-period health care costs estimates in Aetna's Health Care segment and targeted investment spending on the company’s growth initiatives. These were to some extent offset by, lower losses in the company’s individual commercial products.
Earnings Surprise History
Aetna has an impressive earnings surprise history. Before posting the earnings beat in Q4, the company delivered positive surprises in all prior four quarters, as shown in the chart below:
Aetna Inc. Price and EPS Surprise
Overall, the company has a positive earnings surprise of 23.1% in the trailing four quarters.
Revenue Lower Than Expected
Aetna recorded revenues of $14.74 billion, which missed the Zacks Consensus Estimate of $14.89 billion. Also, it compared unfavorably with the year-ago number of $15.72 billion.
Key Stats for Q4:
• Total expense ratio of 20.5% declined 240 basis points year over year.
• Pre-tax margin of 4.8% decreased 160 basis points year over year.
• Debt to capitalization ratio was 37% compared with 53.6% as of Dec 31, 2016.
• The company’s total enrollment decreased to 49.4 million from 52.79 million in the year ago quarter.
What Zacks Rank Says
Aetna carries a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. (You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Check back later for our full write up on this Aetna earnings report!
Don’t Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks’ has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 4 crypto-related stocks now >>
Image: Bigstock
Aetna (AET) Q4 Earnings Beat, Revenues Miss Estimates
Have you been eager to see how Aetna Inc. performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Hartford -based major health insurer’s earnings release this morning:
An Earnings Beat
Aetna came out with earnings of $1.25 per share, which beat the Zacks Consensus Estimate of $1.18. Earnings, however, declined 23% over the prior year quarter.
The year-over-year decline in earnings was primarily due to lower favorable development of prior-period health care costs estimates in Aetna's Health Care segment and targeted investment spending on the company’s growth initiatives. These were to some extent offset by, lower losses in the company’s individual commercial products.
Earnings Surprise History
Aetna has an impressive earnings surprise history. Before posting the earnings beat in Q4, the company delivered positive surprises in all prior four quarters, as shown in the chart below:
Aetna Inc. Price and EPS Surprise
Aetna Inc. Price and EPS Surprise | Aetna Inc. Quote
Overall, the company has a positive earnings surprise of 23.1% in the trailing four quarters.
Revenue Lower Than Expected
Aetna recorded revenues of $14.74 billion, which missed the Zacks Consensus Estimate of $14.89 billion. Also, it compared unfavorably with the year-ago number of $15.72 billion.
Key Stats for Q4:
• Total expense ratio of 20.5% declined 240 basis points year over year.
• Pre-tax margin of 4.8% decreased 160 basis points year over year.
• Debt to capitalization ratio was 37% compared with 53.6% as of Dec 31, 2016.
• The company’s total enrollment decreased to 49.4 million from 52.79 million in the year ago quarter.
What Zacks Rank Says
Aetna carries a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. (You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Check back later for our full write up on this Aetna earnings report!
Don’t Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks’ has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 4 crypto-related stocks now >>